19-20-705. Correction of errors. (1) (a) If a change or error in the records results in a benefit recipient or alternate payee receiving from the retirement system more or less than the benefit recipient or alternate payee would have been entitled to receive had the records been correct, then, on discovery of the error, the retirement board shall correct the error and, as far as practicable, shall adjust the payments so that the actuarial equivalent of the benefit to which the benefit recipient or alternate payee was correctly entitled will be paid.
     (b) The right of the retirement system to actuarially adjust benefits payable to a benefit recipient or alternate payee may not bar the application of any other remedy or penalty available to the retirement system under this chapter or at law. The retirement system may pursue any or all remedies or options for recovery of amounts owed to it that, in its sole discretion, are necessary for the proper administration of the retirement system.
     (c) The retirement system may recover amounts owed to it by withholding:
     (i) as a lump sum, the full amount owed to it from a withdrawal or payout of the member's accumulated contributions;
     (ii) a percentage not to exceed 50% of each monthly benefit payable until the amount owed is paid in full; or
     (iii) any or all of the $500 death benefit.
     (d) The retirement system's right to recover amounts owed to it has priority over the claim of any benefit recipient or alternate payee.
     (2) If the amount of a contribution payment is incorrect, the board may reject the payment or accept the payment and approve an arrangement to collect the correct amount, including any or all of the following arrangements:
     (a) adjustment of subsequent payments to the board from a member or an employer;
     (b) collection of installment payments or a lump-sum payment from an employer; or
     (c) collection of installment payments, a lump-sum payment, or a rollover payment from a member.
     (3) Upon discovery of a forged signature on a retirement benefit application, the benefit must be corrected as provided in subsection (1).
     (4) Interest accrues on contributions not reported or amounts overpaid to members at the actuarially assumed rate. Interest accrues from the date the contributions were due or the date the benefits were paid in error. If the board finds that the error was caused by the teachers' retirement system, interest must be waived.

     History: En. 75-6217 by Sec. 112, Ch. 5, L. 1971; amd. Sec. 12, Ch. 127, L. 1977; R.C.M. 1947, 75-6217(2); Sec. 19-4-705, MCA 1991; redes. 19-20-705 by Code Commissioner, 1993; amd. Sec. 19, Ch. 45, L. 2001; amd. Sec. 7, Ch. 174, L. 2003; amd. Sec. 13, Ch. 90, L. 2007; amd. Sec. 10, Ch. 59, L. 2011.